Market power guarantees profit
A) True, which is why firm's locate as far away from each other as possible.
B) False, market power guarantees price greater than marginal cost.
C) True, market power guarantees price greater than average cost.
D) False, market power guarantees price equal to average cost.
B
You might also like to view...
If a bank has excess reserves,
a. its reserves are greater than its liabilities. b. it can make a loan if it wishes. c. it cannot make a loan if it wishes. d. it must borrow from the Fed.
The limits of the terms of trade are determined by the:
a. distribution costs in each country. b. stock of foreign exchange in each country. c. average total costs of producing the commodities in each country. d. opportunity costs in each country. e. currency exchange rate between the trading partners.
(I) Historically, countries with colonial settlers who planned on staying for long periods of time set up sound economic institutions. (II) Countries with harsh environments not suitable for permanent settlements resulted in colonial settlers adopting weaker and less productive economic institutions before leaving
a. I is true; II is false. b. I is false; II is true. c. Both I and II are true. d. Both I and II are false.
Which of the following theories is not falsifiable or refutable?
A) Everything that has happened to Jane throughout her life happened to her specifically because she was born on June 23, 1993. B) People with blue eyes tend to be more sensitive to light than people with brown eyes. C) Women who are electrical engineers tend to have fewer children than women who are retail cashiers. D) People who watch more than six hours of television per day tend to weigh more than people who watch fewer hours of television daily. E) all of the above